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  • Italian Construction Company Purchased A New Crane For 360 500 at

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    trilocksp Singh
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    Italian Construction Company purchased a new crane for $360,500 at the beginning of year 1. The crane has an estimated useful life of six years and residual value of $35,000. It was used varying hours each year from 1,800 in year 1 to 1,000 in year 6. The document provides calculations for depreciation under straight-line, production, and double-declining balance methods and determines gain or loss if sold after year 3.

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    Italian Construction Company Purchased a New Crane for 360 500 At

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    Italian Construction Company purchased a new crane for $360,500 at the beginning of year 1. The crane has an estimated useful life of six years and residual value of $35,000. It was used varying hours each year from 1,800 in year 1 to 1,000 in year 6. The document provides calculations for depreciation under straight-line, production, and double-declining balance methods and determines gain or loss if sold after year 3.

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    16 views1 page

    Italian Construction Company Purchased A New Crane For 360 500 at

    Uploaded by

    trilocksp Singh
    Italian Construction Company purchased a new crane for $360,500 at the beginning of year 1. The crane has an estimated useful life of six years and residual value of $35,000. It was used varying hours each year from 1,800 in year 1 to 1,000 in year 6. The document provides calculations for depreciation under straight-line, production, and double-declining balance methods and determines gain or loss if sold after year 3.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Italian Construction Company purchased a new crane for

    360 500 at
    Italian Construction Company purchased a new crane for $360,500 at the beginning of year 1.
    The crane has an estimated residual value of $35,000 and an estimated useful life of six years.
    The crane is expected to last 10,000 hours. It was used 1,800 hours in year 1; 2,000 hours in
    year 2; 2,500 hours in year 3; 1,500 hours in year 4; 1,200 hours in year 5; and 1,000 hours in
    year 6.Required1. Compute the annual depreciation and carrying value for the new crane for
    each of the six years under each of the following methods: (a) Straight-line, (b) Production, (c)
    Double-declining-balance (round percentage to two decimal places.)2. If the crane is sold for
    $250,000 after year 3, what would be the amount of gain or loss under each method?3. Do the
    three methods differ in their effect on the company’s profitability? Do they differ in their effect
    on the company’s operating cash flows? Explain.View Solution:
    Italian Construction Company purchased a new crane for 360 500 at
    SOLUTION-- http://solutiondone.online/downloads/italian-construction-company-purchased-a-
    new-crane-for-360-500-at/

    Unlock answers here solutiondone.online


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